Satya Nadella Says ‘Google Makes More Money on Windows Than All of Microsoft.’ This Is How He Plans to Recover Lost Ground

Windows controls more than 70% of the desktop operating system market. Interestingly, it’s not currently a major profit driver for Microsoft. The company has acknowledged in the past that Windows is no longer its flagship product and has shifted its focus toward artificial intelligence and cloud computing.

Google makes more money on Windows. Microsoft CEO Satya Nadella recently said in an interview on the podcast Bg2 Pod that “Google makes more money on Windows than all of Microsoft.” This statement is significant, considering that Windows has traditionally been Microsoft's top product.

No longer Microsoft’s main product. In recent years, Microsoft has undergone a dramatic transformation in its business model. Although Windows remains relevant, the company’s emphasis has moved toward leveraging AI and cloud solutions.

This doesn’t mean Microsoft has abandoned Windows. The company continues to enhance its operating system and aims to use it to support and promote its other products. This shift in focus is likely why Google has generated more revenue from Windows than Microsoft itself.

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A platform with opportunities for all. Windows has its strengths and weaknesses as a distribution system where virtually any company can offer its products. For instance, Google provides its Chrome browser on Windows, which has outpaced Microsoft’s Edge.

In the interview, Nadella also admitted that Microsoft didn’t effectively manage the browser market. He pointed out that despite the benefits of controlling the Windows distribution platform, it’s essentially an “open” operating system where competing tools can thrive. This is what’s happening with Gemini in the AI space.

“We lost so badly that we can now go contest it and win back some share,” Nadella said. Now, Microsoft has an interesting opportunity in artificial intelligence with the introduction of Copilot. However, it remains to be seen whether it can also enhance the Edge browser and Bing.

Image | Heisenberg Media

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